Tablet sales in India drop due to lack of promotional activities

Though total shipments of tablets fell 6% during January-March quarter, demand for 4G devices is likely to grow 50% this yearET Bureau | June 13, 2017, 08:35 IST

Picture source: ThinkStockShipments of tablets to India declined 6 per cent to 7.6 lakh units in the first quarter of 2017 from the previous three-month period, according to a report by research firm CMR. Canada-headquartered Datawind led the list of manufacturers with a 34 per cent market share, followed by iBall at the second spot with a 16 per cent share and Samsung with 15 per cent.

However, tablets supporting 4G and 3G technologies saw a sequential increase of 15 per cent and 31 per cent, respectively, during the quarter, while 2G and Wi-Fi-based tablets declined 62 per cent and 33 per cent, respectively.

“In the first quarter of 2017, the 4G market grew at a single digit (6.86 per cent), but with the growth of 4G connectivity, the 4G tablets segment saw a double-digit growth,” said Menka Kumari, lead analyst, tablets at CMR.

“The upward trend in the 4G market growth will continue and we anticipate the 4G tablet market to grow 50% in 2017.” CMR has predicted that the 4G tablets segment will constitute 50 per cent of the market by the end of this year. The current 4G availability in India is 81.56 per cent. The tablet PCs market recorded a 16 per cent decline compared to a year ago.

The tablet market within Rs.10,000-20,000 and less than Rs.5,000 categories saw a 48 per cent and 4 per cent sequential growth, respectively, during the quarter. However, the Rs.20,000-30,000 category witnessed a massive decline of 61 per cent, while the Rs.5,000-10,000 category witnessed a 26 per cent fall in shipments.

“The continuous decline in the tablet space could be attributed to lack of promotional activities in the space,” said Kumari. “Aadhaar has, of course, provided a lot of impetus to the market, but at the same time, business-toconsumer consumption entirely depends on promotional activities and some exciting features. Aadhaar has led to a rise in government orders, which is a positive factor for the market.” Kumari said the smartphone market has moved towards 4G and the tablets segment will follow the same trend.